SIKKIM & ARUNACHAL
PRADESH ECONOMY
Key Economic Sectors:
Arunachal Pradesh
1.Agriculture
1. Horticulture: Major crops include oranges, apples, kiwi, pineapple, and plums.
2. Staple Crops: Rice, maize, millet, wheat, and pulses.
3. Tea Cultivation: Known for its tea gardens, particularly in regions like the Lohit district
2.Tourism
•Nature and Adventure Tourism: Known for its diverse flora and fauna, national parks, and sanctuaries like
Namdapha National Park and Pakhui Wildlife Sanctuary.
•Cultural Tourism: Rich tribal culture and festivals like Losar, Solung, and Dree Festival.
•Religious Tourism: Significant Buddhist monasteries like Tawang Monastery.
3.Industries
•Traditional Crafts: Known for traditional crafts like carpet weaving, mask making, and wood carving.
• Textiles: Famous for handloom products such as shawls, skirts, and wraps made by various tribes.
4.Hydropower
•Potential and Development: Arunachal Pradesh has a vast potential for hydropower due to its river
systems. Significant projects include Subansiri Lower Hydroelectric Project and Dibang Multipurpose Project.
Agriculture
Importance:
•Agriculture is the primary livelihood for a large portion of the population.
•The state is known for its horticulture, producing crops like oranges, apples, kiwi, pineapples,
and plums.
Challenges:
•Difficult terrain and limited arable land.
•Lack of modern farming techniques and infrastructure.
•Vulnerability to climate change and extreme weather conditions
Tourism
Importance:
•Tourism is a significant contributor to the state's economy.
•Arunachal Pradesh attracts tourists for its natural beauty, adventure sports, and cultural heritage.
Challenges:
•Limited infrastructure and connectivity.
•Seasonal tourism leading to fluctuations in income.
•Preservation of cultural and natural sites
Industries
Importance:
•Industries of traditional crafts are an integral part of the state's culture and provide
employment to many artisans.
•Products like carpets, masks, wood carvings, and textiles are unique to the region.
Challenges:
•Lack of market access and competition from machine-made products.
•Inadequate support for artisans in terms of training and resources.
•Limited awareness and promotion of local crafts.
Hydropower
Importance:
•Arunachal Pradesh has immense potential for hydropower due to its rivers and topography.
•Hydropower projects contribute to the state's revenue and provide electricity.
Challenges:
•Environmental and social impacts of large hydropower projects.
•Displacement of communities and biodiversity concerns.
•Long gestation periods and high initial investment
Key Economic Sectors:
SIKKIM
1.Agriculture
•Organic Farming: Sikkim is the first fully organic state in India, producing organic fruits, vegetables, and spices.
•Major Crops: Cardamom (Sikkim is one of the largest producers), ginger, oranges, and tea.
2.Tourism
•Ecotourism: Sikkim is renowned for its eco-friendly tourism practices, promoting sustainable tourism in places like
Khangchendzonga National Park.
•Adventure Tourism: Activities like trekking, river rafting, and mountaineering in the Himalayas.
•Cultural and Religious Tourism: Home to numerous monasteries such as Rumtek Monastery and cultural festivals
like Saga Dawa
3.Industries
•Pharmaceuticals: Sikkim has a growing pharmaceutical sector with several major companies establishing
manufacturing units in the state.
•Food Processing: The state promotes food processing industries, especially for organic products and horticultural
produce.
4.Hydropower
•Projects and Potential: The state has several operational hydropower projects and continues to develop its
hydropower potential, such as the Teesta Hydroelectric Project.
Agriculture
Importance:
•Sikkim is the first fully organic state in India, which is a significant achievement.
•Major organic crops include cardamom, ginger, oranges, and tea.
Challenges:
•Limited land for large-scale agriculture.
•High transportation costs for exporting produce.
•Need for continuous education and training for organic farming.
Tourism
Importance:
•Tourism is one of the mainstays of Sikkim's economy.
•The state is known for its eco-tourism, adventure tourism, and cultural tourism.
Challenges:
•Limited infrastructure and accessibility.
•Environmental degradation due to tourism.
•Seasonality of tourism impacting consistent revenue.
Industries
Importance:
•The pharmaceutical industry is a major contributor to the state's economy.
•Companies like Sun Pharma, Cipla, and Zydus have significant operations in Sikkim.
Challenges:
•Dependence on a few major companies.
•Infrastructure limitations and logistical challenges.
•Regulatory and compliance issues.
Hydropower
Importance:
•Sikkim has substantial hydropower potential due to its rivers and mountainous terrain.
•Projects like Teesta and Rangit contribute to the state's energy supply and revenue.
Challenges:
•Environmental and social impacts of hydropower projects.
•High initial investment and long development periods.
•Managing water resources and downstream effects.
